AudioEye Announces Customer Update and Preliminary Outlook for Fourth Quarter 2020 and Full Year 2021 Revenue

Rhea-AI Summary

AudioEye, Inc. (NASDAQ: AEYE) reported a customer update and preliminary revenue outlook for Q4 2020 and FY 2021. The company expects to finish Q4 with around 32,000 customers, projecting revenue between $5.4 million and $5.6 million for Q4, and $20.3 million to $20.5 million for the full year. For 2021, AudioEye anticipates revenue of $30 million to $32 million, driven by new partnerships and customer acquisition strategies. The company emphasized significant growth in customer base, aiming for cash flow positivity in 2021.

Positive

• Customer count expected to reach approximately 32,000 by end of Q4 2020.
• New partnership with a leading U.S. digital agency anticipated to add 33,000 customers in 2021.
• Projected Q4 2020 revenue of $5.4 million to $5.6 million, and FY 2020 revenue of $20.3 million to $20.5 million.
• 2021 revenue outlook of $30 million to $32 million, with expectations to grow monthly recurring revenue (MRR) and achieve cash flow positivity.

Negative

• Preliminary revenue figures are subject to changes and uncertainties related to contract timing and financial reporting.
• Dependence on new sales channels poses risks as success is uncertain.

TUCSON, Ariz., Dec. 16, 2020 /PRNewswire/ --  AudioEye, Inc. (NASDAQ: AEYE), an industry-leading digital accessibility platform delivering website accessibility compliance to businesses of all sizes, provided a customer update and its preliminary outlook for revenue for the fourth quarter 2020 and full year 2021.

Preliminary Fourth Quarter 2020 Updates

• Expected to end the quarter with a customer count of approximately 32,000.
• New partnership with a top U.S. digital agency launching in January to on-board an additional 33,000 customers at a basic service tier with upgrade provisions.
• Fourth quarter 2020 revenue is expected to be in the range of $5.4 million to $5.6 million and full year 2020 revenue of $20.3 million to $20.5 million.

Financial Outlook

• For 2021, the Company expects revenue in the range of $30 million to $32 million and reiterates its expectation to grow MRR and become cash flow positive in 2021.
• The Company's outlook for 2021 is based on a number of assumptions, including with respect to the progress and timing of sales through relatively newer sales channels.

"This year, we have seen record growth in AudioEye's business and growing interest in our accessibility products. In 2020 alone, we expect to add approximately 25,000 customers to our base, an increase of 365%," said David Moradi, interim CEO of AudioEye. "We anticipate this momentum will carry into 2021 as we continue to invest in our technology platform, grow our partnership strategy and build out our team."

The expected fourth quarter 2020 revenue in this press release is preliminary and is subject to numerous factors, including changes in the anticipated timing related to certain material contracts and completion of the Company's year-end financial reporting processes and audit. The Company currently intends to report its full year and fourth quarter 2020 results in March 2021.

About AudioEye
AudioEye is an industry-leading digital accessibility platform delivering trusted ADA and WCAG accessibility compliance at scale. Through patented technology, subject matter expertise and proprietary processes, AudioEye is eradicating all barriers to digital access, helping creators get accessible and supporting them with ongoing advisory and automated upkeep. Trusted by the FCC, ADP, SSA, Samsung, and more, AudioEye helps everyone identify and resolve issues of accessibility and enhance user experiences, automating digital accessibility for the widest audiences. AudioEye stands out among its competitors because it delivers Machine Learning/AI-driven accessibility without fundamental changes to site architecture. Join our movement at www.audioeye.com.

Forward-Looking Statements
All statements in this press release about AudioEye's expectations, beliefs, plans, objectives, prospects, financial condition, assumptions or future events or performance are not historical facts and are "forward-looking statements" as that term is defined under the federal securities laws. Forward-looking statements are often, but not always, made through the use of words or phrases such as "believe", "anticipate", "should", "intend", "plan", "will", "expects", "estimates", "projects", "positioned", "strategy", "outlook", "forecast" and similar words. You should read the statements that contain these types of words carefully. Such forward-looking statements contained herein include, but are not limited to, statements regarding expected revenue for the current period and future periods. These statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what is expressed or implied in such forward-looking statements, including the variability of AudioEye's revenue and financial performance; changes in timing of customer contracts and/or the recognition of revenue related thereto; risks associated with product development and technological changes; the acceptance of AudioEye's products in the marketplace by existing and potential future customers; competition; general economic conditions; and uncertainties regarding the impact on our business and the overall economy from the coronavirus (COVID-19) outbreak. These and other risks are described more fully in AudioEye's filings with the Securities and Exchange Commission (the "SEC"), including AudioEye's Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 30, 2020, Form 10-Q for the quarter ended March 31, 2020 filed with the SEC on May 15, 2020, Form 10-Q for the quarter ended June 30, 2020 filed with the SEC on August 13, 2020, Form 10-Q for the quarter ended September 30, 2020 filed with the SEC on November 13, 2020 and its subsequent filings with the SEC. There may be events in the future that AudioEye is not able to predict accurately or over which AudioEye has no control. Forward-looking statements reflect management's view as of the date of this press release, and AudioEye urges you not to place undue reliance on these forward-looking statements. AudioEye does not undertake any obligation to update such forward-looking statements to reflect new information, future events or uncertainties or otherwise after the date hereof.

Corporate Contact:
AudioEye, Inc.
Dr. Carr Bettis, Executive Chairman
cbettis@audioeye.com

Investor Contact:
Matt Glover or Tom Colton
AEYE@gatewayir.com
(949) 574-3860

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SOURCE AudioEye, Inc.

FAQ

What is AudioEye's expected revenue for Q4 2020?

AudioEye expects Q4 2020 revenue to be between $5.4 million and $5.6 million.

How many customers does AudioEye expect to have by the end of Q4 2020?

AudioEye expects to have approximately 32,000 customers by the end of Q4 2020.

What is AudioEye's revenue outlook for 2021?

AudioEye anticipates revenue in the range of $30 million to $32 million for 2021.

What new partnership is AudioEye announcing?

AudioEye has partnered with a top U.S. digital agency to onboard an additional 33,000 customers.

When will AudioEye report its full year and Q4 2020 results?

AudioEye intends to report its full year and Q4 2020 results in March 2021.